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A cooling effect

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Singapore's property market had already started moderating when its government introduced fresh measures on August 30 to preempt the formation of a housing price bubble.

Much like Hong Kong, the Lion City's residential sector has recovered swiftly from the credit crunch. But, unlike Hong Kong, the mass market has been leading the price gains in Singapore, with luxury property lagging behind.

After some heady growth, a pause was perhaps inevitable. Market watchers say it is likely a healthy development. Prices in the mass market are now well above the city's previous price peak, set in 2007. Luxury prices, though, have yet to reach their high-water mark.

'What's happening now is that a lot of people are waiting and seeing,' says Chua Chor Hoon, head of Southeast Asia research at real estate adviser DTZ. 'There has been very high transaction volume, so a lot of people have gone into the market already.'

About 14,000 properties changed hands last year, a heady rate for Singapore. So even before the government stepped in, there were signs that the market was beginning to flag, unable to keep up that pace.

The measures introduced are familiar and were released later than some market watchers had expected.

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